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INDUSTRY BLASTS PAST THE $55B MILESTONE
Buoyed by the equity markets, which came roaring back in September after a difficult August, the Australian ETF industry broke through the $55B funds under management milestone last month, ending September at an all-time high in terms of funds under management of $56.2B. Based on the level of growth we’ve seen so far this year, we believe ETF industry FuM is on track to exceed $60B by end 2019, which would mean unprecedented 12-month growth of $20B. Read on for more details.
Australian ETP Market Cap: July 2001 – September 2019
Source: ASX, BetaShares
- ASX Exchange Traded Product Market Cap: $56.2B – New industry record
- Market cap increase for month: 3.9%, +$2.1B
- Market cap growth for the last 12 months: 33%, + $14.1B – Greatest absolute growth over 12 mth period
Comment: The industry ended September at a record of $56.2B with a robust monthly market cap increase of 3.9% which amounted to over $2B in absolute growth for the month
- Unit growth for month (units outstanding by number): +2.5%
- Net new money for month (units outstanding by % value): +$1.6B
Comment: Over three-quarters of the growth this month came from net inflows into the industry which were a very strong $1.6B, with recent months showing that investors are increasing their allocations to ETFs in both rising and falling equity markets
- 246 Exchange Traded Products trading on the ASX – no new products launched this month; 1 maturation of single bond product
- Trading value decreased 5% after last month’s record, but was still 2nd highest trading volume on record ($5.1B)
Comment: September was also a very busy month for trading, which at $5.1B in total, was the 2nd highest value traded on record
- Strongest performance this month was from Palladium exposures, followed by BetaShares Global Banks ETF – Currency Hedged (ASX: BNKS) and BetaShares Japan ETF – Currency Hedged (ASX: HJPN)
Top 5 category inflows (by $) – September
Comment: Unlike other months so far this year, it was broad Australian equities that took in the most flows with over $500M of net new money into this category. Australian Bond flows continued to be robust, and were the 2nd best category for flows.
Top category outflows (by $) – September
There were no significant category level outflows in September.
Top sub-category inflows (by $) – September
|Australian Equities – Broad||$504,838,923|
|International Equities – Developed World||$173,401,103|
Top sub-category outflows (by $) – September
|Australian Equities – Financials Sector||($25,264,200)|
|International Equities – Europe||($4,764,043)|
Comment: Monthly net outflows were very limited with small outflows from Australian Financial Sector products most likely on profit selling, and continued outflows from European exposures which appear to remain an area of concern for investors.